API: Obama Catering to Activists with Oil Tax Proposal

Ahead of President Barack Obama’s eighth and final budget proposal to Congress, the American Petroleum Institute’s Jack Gerard says the administration is expected to continue its “head in the sand” approach to managing the U.S. energy renaissance.

Gerard, president of the oil and gas trade group, said in a conference call with reporters, that the $10-per-barrel tax on oil the White House floated last week would penalize those who can afford it the least – the middle and lower income families most impacted by the transportation price of food and other consumer goods.

“It appears the administration’s last year is dedicated to furthering an extremist agenda at the very real expense of the middle class and low income families and … catering to ‘leave it in the ground’ activists,” he said.

Rather, Gerard said, the administration should revisit its policies on drilling offshore and on federal land to generate revenue for transportation projects. Ignoring those opportunities is squandering the U.S. ability to lead the world in energy abundance carbon emission reductions, he said.

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com

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David Pritchard | Feb. 13, 2016

It is API that has its head buried in the sand. There is no such thing as Mr. Market given OPECs continued manipulation of supply, hence prices. American Independent producers, who successfully have the led the charge for our energy independence are being dismantled as well as the services that supply them. It is ridiculous to speak of opportunities if they will not pay out. That is simply pandering to politics. I can think of many reasons why we need a strong US industry, if for no other reason than national security. Call it what one wishes, but custom duties will at least level the playing field.

CW Minshew | Feb. 9, 2016

We saw FIXED prices by category for natural gas with the NGPA of 1978; it FAILED. When governments intrude into markets, distortion occurs. While most would like to have a fixed oil price, long-term this idea would lead to massive surpluses or shortages. While we are in pain, Mr. Market will provide the supply/demand signals that will allow us to prosper & develop. The arbitrary withholding of supply via OPEC prior to 2013 resulted in the huge surpluses that must be addressed today!! Maybe if OPEC dissolves, we would ALL have a better idea of how much oil is needed.

Jack Perez | Feb. 8, 2016

Why cant we simply FIX the price of crude oil at US$70 per bbl worldwide like GOLD PRICES or at least fix it in USA so any barrel produce locally will sell for $70 per bbl minimum and any CHEAP import will pay CUSTOM DUTY TAXES for the difference between the sales invoice and USA local price of US$70 this will give US TREASURY
more than US$10 per bbl taxes they want to pay for all their programs and bring USA economy and country to the TOP.
GOD BLESS AMERICA